Abstract
This study investigates a mechanism that potentially helps an indigenous firm to benefit from the spillovers from inward FDI and protect itself from the possible harms of intensified competition for markets and inputs that are also associated with inward FDI. The mechanism is iteration between divergent and convergent thinking in the firm’s inventive and innovative endeavors. We theorize that a demonstrated capacity for such iteration enhances an indigenous firm’s success in invention and innovation and the firm’s chance of benefiting from rather than being hurt by inward FDI. Our empirical tests using data from the biopharmaceutical industry in the US provide support for our theory and hypotheses.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
